Let $X$ be a linear normed space, $y\in X$ and $f\in X^*$. Define $A:X\to X$ as $Ax=f(x)y$. Prove that $A\in \mathcal{L}(X)$ and find its norm. Hint: when finding $||A||$, you may use the corollary of Hahn-Banach theorem to show that $\exists x\in X$ s.t. $||x||=1$ and $|f(x)|=||f||$.
Okay so showing that $A\in \mathcal{L}(X)$ was easy. Then my candidate for the norm is $||A||=||f||||y||$. I showed that $||A||\leq||f||||y||$ but I am stuck with the part which uses the hint. I know the corollary I am supposed to use is: For every nonzero $x\in X$ there exists a functional $g\in X^*$ s.t. $g(x)=||x||$ and $||g||=1$. I am not sure if I am supposed to explicitly come up with some $x$ then use the corollary on it and end up with the hint somehow. I tried using the definition of $A$ since $Ax\in X$ but I got nothing. I know how to proceed if I just figure out how to prove the hint.
You have been mislead. The hint is not valid. (It is valid in reflexive spaces, not in general normed linear spaces). For example, let $f(x)=\sum (1-\frac 1 n) x_n$ on $\ell^{1}$. Then $\|f\|=1$ and there is no $x$ such that $\|x\|=1$ and $f(x)=1$.
However, you can prove the result using the following: given $\epsilon >0$ there exists a vector $x$ of norm $1$ such that $f(x) >\|f\|-\epsilon$.